VSLA Fosters Economic Transformation in Rwanda
Blog | 8/12/25
In 2021, Igihozo cooperative from Park-edge Nyabihu district received funding from IGCP to boost their savings scheme. Four years later, the cooperative and its members registered economic transformation.
“In 2021, IGCP boosted our loans and savings basket with 1 million Rwf ($700) and this marked the beginning of financial transformation and improved livelihoods for our members, “says Pascazia Nyirabariyanga, President of Igihozo Cooperative.
First forward, all the 39 members of Igihozo cooperative started saving Rwf 500 per month but later realized that they could do better. They increased the monthly savings to Rwf 1000 per month and later to Rwf 5000. Members were also allowed to purchase more shares and borrow up to Rwf 700,000 ($ 480) at an interest rate of 6%.
The accumulated savings from interests coupled with individual savings has tremendously grown into a huge financial pool for the cooperative. This has allowed members to access more money for investment and to address their individual and household needs. In 2025 for example, the members shared Rwf 16 million ($11000) of profit, an amount that highly boosted their livelihoods.
“My annual share was Rwf 4,15000 ($290) which I used to purchase 9 hectares of land for agriculture. I hope to harvest at least 1.5 tons of Irish that will likely fetch me about Rwf 600,000 ($413). My long-term plan is to purchase 18 hectares of land,” says Esperance Mukandutiye, Member of Igihozo.
In a related development Vestine Mukamurenzi, Gihozo says she increased her mobile money business from Rwf 300,000 ($206) to Rwf 1m ($700) while Mukamurenzi boasts of putting her daughter in a good school and paying school fees worth Rwf 100,000 ($69) with ease.
Another beneficiary, Angelique Niyigena credits the fund for giving her an opportunity to own a business. “Much as I had business ideas, I lacked the capital to start. After getting my share, I invested in Irish seedling and got an immense profit. I invested Rwf 4,15000 ($290) and earned Rwf 850,000 ($584) which I re-invested in seedling,” says Niyigena.
As for Clemantine Nyiransengimana, another member, her urgent need was livestock. “I bought 3 sheep and added to my livestock. I hope to sell them off so that I can buy a cow instead. I love investing in livestock because of the organic manure they give,” adds Nyiransengimana.
According to Benjamin Mugabukomeye, Rwanda IGCP Country Coordinator, boosting the savings portfolio for the Village Loans and Savings Associations has steadily improved community livelihoods and their buy-in on conservation. “We have seen communities appreciate and support conservation more after this support because we make the objective of our interventions very clear from the start. We are happy to see members invest in alternative livelihood options that have gradually reduced the community’s dependency on the park on the park for survival,” says the Benjamin.
